Burberry full year earnings forecast: can "Burberry Forward" halt the sales slide?
Luxury fashion house Burberry is set to release its FY25 results on 14 May, with analysts watching for early signs of recovery amid the brand's strategic overhaul.
Burberry's FY25 results expectations
Burberry Group is set to announce its preliminary results for the fiscal year ending 29 March 2025 on Wednesday, 14 May 2025. This follows a challenging year marked by declining sales and the implementation of a strategic turnaround plan under CEO Joshua Schulman.
According to the latest LSEG Data & Analytics consensus estimates, analysts anticipate Group Revenue of £2,451 billion, reflecting a 17% decline at constant exchange rates (CER) compared to the previous year. Comparable Retail Sales are expected to show a decrease of 23% year-over-year (YoY).
Pre-Tax Profit is forecast at a £50.21 million loss, which represents a dramatic decline from the previous year's figure of a gain of £383 million, highlighting the scale of Burberry's current challenges.
Analysts expect an Adjusted EPS loss of 11.3 pence per share, a stark reversal from the 73.9p positive earnings reported in FY24. This would mark Burberry's first annual loss in over a decade, underscoring the severity of the brand's current predicament.
According to LSEG Data & analytics, 3 analysts have a ‘strong buy’ recommendation for Burberry, 4 a ‘buy’, 8 a ‘hold’, 3 a ‘sell’ and 2 a ‘strong sell’ with a long-term mean price target at 913.50p, 13% above the current share price (as of 12/05/2025).
Burberry LSEG Data & Analytics chart
Burberry has a TipRanks Smart Score of ‘6 Neutral’ but is rated as a ‘buy’ with 6 ’buy’, 5 ‘hold’ and 1 ‘sell’ recommendations (as of 12/05/2025).
Burberry TipRanks Smart Score chart
Fourth quarter performance indicators
For the fourth quarter (Q4) alone, comparable retail sales are expected to decline by 7% YoY, indicating a potential stabilisation compared to earlier quarters. This would represent an improvement from the 15% decline reported in the previous quarter.
This modest improvement in trend may provide some reassurance to investors that the worst could be behind the brand as it implements its turnaround strategy. However, a 7% decline still represents significant underperformance in a luxury sector that has faced broader challenges.
Regional performance is likely to remain mixed, with the Americas showing early signs of recovery while Asia Pacific, particularly China, continues to struggle. Chinese consumer spending on luxury goods has been hit by economic uncertainty and changing preferences.
Digital sales will be another key metric to watch, with e-commerce becoming increasingly important in the luxury sector. Burberry has been investing in its online capabilities, though the effectiveness of these investments remains to be seen in the results.
"Burberry Forward" strategy and implementation
In response to the downturn, Burberry launched the "Burberry Forward" strategy in November 2024, aiming to revitalise the brand and drive long-term value. Key focus areas include product focus, retail optimisation, and brand reinvigoration.
The product focus emphasises core categories like outerwear and scarves, returning to Burberry's heritage strengths after several seasons of more experimental collections. This back-to-basics approach aims to reconnect the brand with its traditional customer base.
Retail optimisation efforts include enhancing store productivity and aligning distribution with product strategy. The company has begun selectively closing underperforming stores while renovating flagship locations to create more immersive brand experiences.
Brand reinvigoration initiatives have focused on reigniting brand desirability through targeted marketing campaigns. These have emphasised Burberry's British heritage and craftsmanship, with early campaigns showing a notable shift in aesthetic from previous seasons.
Financial considerations and market challenges
Burberry has indicated that foreign exchange headwinds are expected to impact FY25 revenue by approximately £65 million and adjusted operating profit by around £25 million. Additionally, the company has suspended dividend payments for FY25 to maintain financial flexibility during the turnaround.
The suspension of dividends marks a significant shift for the company, which had maintained consistent payouts to shareholders even through challenging periods like the pandemic. This move signals management's prioritisation of long-term recovery over short-term shareholder returns.
Cost control measures will be closely scrutinized in the results. The company has implemented efficiency programs targeting annual savings of £50 million, though restructuring costs associated with these initiatives are expected to partially offset the benefits in FY25.
The broader luxury market has faced headwinds throughout FY25, with geopolitical tensions, economic uncertainty heightened by the US’ tariff war, and shifting consumer preferences all contributing to a challenging environment. Burberry's performance should be viewed within this context.
Leadership and strategic outlook
CEO Joshua Schulman, who joined Burberry in 2023 after leading brands like Coach and Jimmy Choo, faces significant pressure to deliver results. The upcoming earnings announcement will be closely watched for any updates or refinements to the strategic plan he unveiled in November.
The executive team has undergone several changes in recent months, with new appointments in key roles including design, marketing, and digital. These leadership changes reflect the company's commitment to bringing fresh perspectives to address its challenges.
While FY25 has been challenging, the implementation of strategic initiatives and signs of sales stabilisation provide a cautiously optimistic outlook. Investors and analysts will closely monitor the upcoming results for further indications of recovery and the effectiveness of the "Burberry Forward" strategy.
The company's guidance for FY26 will be particularly important, providing insights into management's confidence in the turnaround timeline. Market expectations currently suggest a gradual recovery, with a return to meaningful profitability not anticipated until FY27.
Burberry technical analysis
Burberry’s share price has been rapidly falling from its April 2023 peak at 2,656 pence, by over 75% to its September 2024 low at 555.6p. In early April 2025 the Burberry share price has once more come close to this low by falling to 597p before regaining previously lost ground.
Burberry weekly candlestick chart
Over the past month the Burberry share price gained around 30% in value while currently being on track for its fourth straight week of gains.
Despite Monday 12 May’s US-China tariff de-escalation boost and the Burberry share price rallying by around 7%, year-to-date its share price is still in the doldrums at -16%.
The 200- and 55-day simple moving average (SMAs) at 838.2p-to-839.9p will need to be exceeded on a daily chart closing basis for the early December low at 882p to be reached next.
Burberry daily candlestick chart
Further potential resistance can be spotted between the mid-December-to-January lows at 919.4p-to-930.8p.
The short-term uptrend will stay intact as long as last week’s low at 715.8p underpins on a daily chart closing basis.
How to trade Burberry shares ahead of results
For investors considering positions in Burberry ahead of these crucial results, several approaches are available through IG's trading and investment platforms.
- Research Burberry's market position, recent performance trends, and the broader luxury sector to inform your trading decision.
- Decide whether you want to trade or invest in Burberry shares based on your outlook for the company's turnaround prospects.
- Open an account with IG by visiting our website and completing the application process.
- Search for 'Burberry' or its ticker 'BRBY' on our trading platform or app.
- Place your trade, ensuring you have appropriate risk management measures in place given the potential volatility around earnings announcements.
Spread betting and CFD trading offer ways to potentially profit from both rising and falling share prices. This flexibility could be particularly valuable given the uncertainty surrounding Burberry's results.
For those with a longer-term perspective who believe in the eventual success of the turnaround strategy, share dealing offers a way to build a position at what could prove to be attractive valuations if the company returns to growth.
Burberry's upcoming results will provide crucial insights into the health of both the company and the broader luxury sector. While expectations are muted, any signs that the "Burberry Forward" strategy is gaining traction could mark a turning point for this iconic British brand that has found itself at a crossroads.
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